Terminal tractors, also known as yard, shunt, or spotter trucks, are used to move containers and semitrailers in warehouse facilities, railway yards, airports, cargo yards, and other industries. These tractors feature a single cab that offers great visibility of the environment and allows the driver to operate it easily; a short wheelbase that allows the tractor to move in small spaces; a sliding rear door usually made of glass for a clear 350-degree view; and others.
According to OMR Research, the market is expected to grow at a CAGR of 4.8% during the forecast period (2023–2029). The reason behind this growth is an increasing manufacturing sector and developing economies with advanced technologies. Moreover, terminal tractors save energy, improve work efficiency and ease of operation in the facility, and require less maintenance, which prompts the industries to use these tractors instead of manual labor.
Segments of the Market
The global terminal tractor market is segmented on the basis of propulsion type and applications. Based on propulsion type, the market is sub-segmented into electric, diesel, and hybrid. Based on applications, the market is sub-segmented into railways, inland waterways, marine, and others.
Recent Developments
Cargotec Oyj, Konecranes Oyj, Hyster, Terberg Special Vehicles, Yale Materials Handling, Inc., USA Truck, Inc., Autocar Company, Volvo Group, MAFI Transport-Systeme GmbH, TICO Tractors, and others are key market players that invest, collaborate, and launch new products in the market, driving the market successfully. Some of the recent developments in the market include:
• In November 2022, Orange EV, a leading manufacturer of electric, heavy-duty, and zero-emission trucks, announced its new corporate headquarters and manufacturing operations will be located in the Turner Logistics Center, an industrial park being built by Kansas City-based NorthPoint Development in Kansas City, Kansas. The company will have access to over 400,000 square feet of space and expects to move to the new facility in mid-2023. The facility will produce a maximum of 1,800 terminal trucks every year in single-shift operations.
• In November 2022, Terberg Tractors Malaysia Sdn Bhd (TTM), a joint venture between Sime Darby Industrial Sdn Bhd and the Netherlands-based Royal Terberg Group BV, announced plans to expand its presence in Asia Pacific with the introduction of Malaysia's first fully battery-powered electric terminal tractor, the Model YT200EV. The YT200EV terminal tractor is made in Pasir Gudang, Johor, at TTM's manufacturing and assembly facility. The terminal tractor will be available for distribution in early December 2022.
• In September 2022, BMW Manufacturing opened a new logistics center in Spartanburg, South Carolina, on Freeman Farm Road. The $100 million LCX facility, which is nearly one million square feet in size, combines two off-site warehouses into one operation. The facility has self-driving yard trucks, or autonomous hostlers.
• In August 2022, Orange EV announced it had closed the funding round led by S2G Ventures and CCI with $35 million for the company. The funds will be used to support and accelerate the growth of the company.
• In May 2021, the E-ACTT terminal tractor was introduced by Autocar, LLC, the manufacturer of North America's oldest brand of specialized, severe-duty vocational trucks. The E-ACTT is powered by a 210-kWh modular battery pack that can run for up to 22 hours on a single charge. The E-ACTT charges up to 150 kW using CCS-1-compliant DC fast charging, which is an industry standard. The company also delivered E-ACTT to a truckload shipping company, Old Dominion Freight Line’s facility in Rialto, California, in October 2022.
Conclusion
The global terminal tractor market is growing due to various factors, such as rising e-commerce popularity among the population, which requires logistics and distribution handling facilities to utilize terminal tractors. For instance, Amazon began construction on a 4.1 million-square-foot industrial project in Ontario in May 2022. The 5-story building will have advanced robotics operations, including advanced terminal tractors. In addition, eco-friendly terminal tractors and technological advancements in manufacturing them with different features enhance their use, resulting in high demand in the market. For instance, in November 2022, Phantom Auto, an OurCrowd portfolio company based in Israel and the US, announced plans to acquire Voysys AB, a Swedish video-communication software developer. The acquisition will allow Phantom to strengthen their core technology by integrating Voysys’s IP into the company’s technology stack. This will assist Phantom’s customers in easily moving their goods remotely with live video. Voysys is a business that specializes in ultra-low latency and multi-link video streaming across unstable networks. It already collaborates with some of the biggest forklift, automobile, and construction equipment manufacturers in the world. Moreover, terminal tractors improve the safety and security of the items and employees as well, reduce item transaction time, reduce the extra costs of hiring employees for manual load transactions, and others—all of which significantly contribute to the growth of the terminal tractor market.